DETERMINING ERP SUCCESS IN ORGANIZATIONS IN INDONESIA: TESTING AN INTEGRATIVE MODEL OF LEADERSHIP, INNOVATION, AND ORGANIZATIONAL CULTURE
DOI:
https://doi.org/10.36085/jam-ekis.v9i1.9627Abstract
The high failure rate of Enterprise Resource Planning (ERP) implementations demands an in-depth evaluation of non-technical aspects, particularly leadership and organizational dynamics. This study aims to examine the moderated mediation mechanism linking transformational leadership to successful ERP implementation, positioning employee innovative behavior as a mediator and organizational culture as a moderator. Using a quantitative approach with a cross-sectional design, data were collected from 310 professional employees in Indonesia who had used an ERP system for at least one year. Data analysis was conducted using Partial Least Squares-based Structural Equation Modeling (PLS-SEM). The results demonstrate that transformational leadership has a significant positive effect in triggering innovative behavior. The most crucial finding indicates that innovative behavior is the most dominant determinant (β=0.592) in predicting ERP success, surpassing other factors. Furthermore, organizational culture is proven to moderate the relationship, where an adaptive culture serves as a catalyst that strengthens the impact of leadership on innovation. This study concludes that successful digital transformation requires a paradigm shift from a techno-centric approach to a human-centric one, where visionary leaders and a supportive culture are absolute prerequisites for technology adaptation
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